Texas International Fuel Tax Agreement License

If you are involved in the transportation industry and operate vehicles across state lines, you must have a Texas International Fuel Tax Agreement (IFTA) license. This license is required to ensure that taxes are properly paid on the fuel used by your vehicles while traveling through different states.

What is IFTA?

The IFTA is a cooperative agreement between the United States and Canada that simplifies the reporting of fuel taxes for carriers operating in multiple jurisdictions. This agreement requires carriers to report and pay fuel taxes to their home state, which then distributes the taxes to other states in which the carrier operated.

Why do I need a Texas IFTA license?

If you are a carrier operating in Texas and any other state or Canadian province, you must have an IFTA license. This license allows you to report and pay fuel taxes based on the distance traveled in each jurisdiction.

How to get a Texas IFTA license?

To obtain a Texas IFTA license, you must complete an application and submit it to the Texas Comptroller of Public Accounts. You must have an established place of business in Texas, and your vehicles must travel in at least one other IFTA jurisdiction. You also need to provide information about your vehicles, including their license plates and gross vehicle weights.

Once your application is approved, you will receive an IFTA license, two decals, and instructions on how to report and pay fuel taxes. You must display the decals on each side of your vehicle and renew your license annually.

What are the benefits of having a Texas IFTA license?

Having a Texas IFTA license allows you to simplify your fuel tax reporting and compliance efforts. Instead of filing separate reports and payments for each jurisdiction you operate in, you only need to file one report and payment to your home state.

Additionally, carriers with IFTA licenses are less likely to face penalties and fines for non-compliance with fuel tax reporting requirements.

In conclusion, if you are a carrier operating in Texas and any other jurisdiction covered by the IFTA, you must have a Texas IFTA license. This license allows you to report and pay fuel taxes based on the distance traveled in each jurisdiction. By obtaining this license, you can simplify your fuel tax reporting and compliance efforts and avoid penalties for non-compliance.